December

2023

HomeLet rental
index report
The HomeLet Rental Index represents the largest,
most insightful, and up-to-date view on the UK’s private
rented sector. With data qualified through high-quality
tenant referencing, conducted on behalf of over 4,500
UK letting agents, the trends reported within the Index
are based on brand new tenancies and agreed rents,
giving the most relevant insight into changes
in the Private Rented Sector.

In conjunction with Dataloft, a PriceHubble company

HomeLet rental December 2
index report 2023

Industry insight
Whilst we are cautiously optimistic that things can
improve for the UK rental sector, it’s too early to
talk about an upturn in fortunes just yet. Of course,
Although these figures marginally lower rents put slightly more money in
can be viewed as a minor tenants’ pockets and partially reduce the likelihood of
win for tenants at least, defaults, but the broader landscape is still incredibly
let’s not kid ourselves that challenging for all parties – with little sign of easing.
this represents anything Unless we see some dramatic changes, 2024 looks
resembling a breakthrough. set to bring more of the same. Landlords will have to
do battle with a familiar array of struggles, including a
lack of stock, rising costs and prohibitively expensive
buy-to-let mortgage rates.

Andy Halstead
Group CEO
HomeLet and Let Alliance Next
HomeLet rental December 3
index report 2023

Go to Go to Go to Go to
page 4 page 9 page 13 page 16

Average London Affordability Regional

Overview rents and focus focus
change
in rents

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HomeLet rental December 4
index report 2023

+
– +
–
1 12
Average Change Change
Average rent monthly annual
rents and
change £1,268 -0.9% +8.0%
in rents Following a small drop in A 0.9% fall in December Overall rents grew by 8%
November, average UK rents is the greatest monthly fall over the whole of 2023,
fell further in December, since October 2020. slightly below the 10.8%
suggesting a slowdown in rise seen in 2022.
the UK’s rental market.

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HomeLet rental December 5
index report 2023
Annual change December 2022 to December 2023
16%

11.2% Northern Ireland

14%
13.8% 8.6% UK excluding London

12%
8.5% Scotland

10.8%
8.0% UK
10%
9.4% 7.7% Wales
UK and 8%
9.2%

home 6.9%

nations
6%

4%
Showing annual change in rents,
December 2023 vs December
2022. Average rents are based
2% on agreed rents for tenancies
started in each month.

0%

Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2022 2023

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HomeLet rental December 6
index report 2023
Annual change December 2022 to December 2023
16%

9.8% East Midlands

14.6%
14%
9.7% East of England

12%
9.6% South East
11.1%
10.9% 8.2% Yorkshire and the Humber
10% 10.0%
10.0% 7.8% West Midlands

England
7.5%
8% 7.5% North West
7.4%

by region 6.3%
7.2%
North East
6% 6.6%

6.0% Greater London

4%
5.3% South West

2%
Showing annual change in rents,
December 2023 vs December
0%
2022. Average rents are based
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
on agreed rents for tenancies
2022 2023 started in each month.

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HomeLet rental December 7
index report 2023
North East
Scotland +6.3%
+8.5% -1.2%
-1.2% £657
£911 Yorkshire and the Humber Annual change
+8.2% December 2022 to
Northern Ireland -1.7% December 2023
+11.2% £855
Under 2.5%
Change
-2.0% East Midlands year
2.5% to 5%
£861 +9.8%
Regional +0.3% Change
month
5% to 7.5%

snapshot North West £875 7.5% to 10%

+7.5% West Midlands Average

rent
10% and over

-0.6% +7.8%
£1,008 0.0% November
2022 to 2023
Wales £940
+7.7% East of England
-0.1% +9.7%
£866 -0.7%
£1,215
South West
South East Greater London
+5.3%
+9.6% +6.0%
-0.3%
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-0.9% -2.2%
£1,138
a PriceHubble company Back £1,353 £2,127 Next Regional discount / premium
HomeLet rental December 8
index report 2023
Comparison with UK average December 2022 to December 2023

Below UK average Above

December 2023
East Midlands -31.0%
-32.1% December 2022
East of England -4.2%
-5.6%
Greater London 67.7%

Regional
71.0% Showing how regional
rents compared to the
North East -48.2%
UK average in December
discount /
-47.4%
2023 and a year earlier,
North West -20.5%
-20.1% i.e., average rents in

premium Northern Ireland -32.1%

-34.1%
the East Midlands in
December 2023 were

to UK Scotland -28.2%
-28.4%
31.0% below the national
average. However, in

average
December 2022 they were
South East 6.7% 32.1% below the national
5.2%
average.
South West -10.3%
-7.9%
Wales -31.7%
-31.5%
West Midlands -25.9%
-25.7%
Yorkshire and -32.6%
the Humber -32.7%
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HomeLet rental December 9
index report 2023

+
–
12
Average Change Strongest
rent annual performer
London
focus £2,127 +6.0% +14.8%
Average rents fell by 2.2% The drop in the last couple of Lambeth
in London in December, months resulted in an annual
the greatest monthly fall growth in rents of 6%, less Rents rose in all except
since October 2020. than half the 14.6% growth one area of London
seen in 2022. in 2023, although just
three London areas
saw double-digit growth
over the year as a whole.

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HomeLet rental December 10
index report 2023

Annual change December 2022 to December 2023

Annual Average
change rent

1 Barking, Dagenham and Havering 14.1% £1,728

9 2 Barnet 6.4% £2,009
3 Bexley and Greenwich 6.8% £1,780
2
4 Brent 3.5% £2,021
18
13 12 5 Bromley 4.1% £1,821
1
4 6 Camden, City of London 0.1% £2,423
6
10
7 Croydon 7.2% £1,435
8 19
21 8 Ealing -1.2% £1,912
11

By borough
9 Enfield 6.3% £1,849
3
14 17 10 Hackney and Newham 4.9% £2,007
20 16
11 Hammersmith, Fulham, Kensington and Chelsea 3.5% £2,619
12 Haringey and Islington 1.4% £2,094
15 13 Harrow and Hillingdon 2.6% £1,666
5
7 14 Hounslow and Richmond 7.4% £1,840
15 Merton, Kingston upon Thames and Sutton 1.9% £1,784
16 Lambeth 14.8% £2,772
17 Lewisham and Southwark 8.9% £2,169
Less than 0% 18 Redbridge and Waltham Forest 6.6% £1,671
19 Tower Hamlets 4.3% £2,223
0% to 2%
20 Wandsworth 6.5% £2,429
2% to 4% 21 Westminster 11.9% £3,727

4% to 6% Aggregations of London
Boroughs are based on
the NUTS2 statistical
6% and over classification model.
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HomeLet rental December 11
index report 2023
5
yr

Average rent December 2018 Average rent December 2023

9 9

2 2
18 18
13 12 13 12
1 1
4 6 4 6
10 10
8 19 8 19
21 21

Five-year
11 11

3 3
14 20 16 17 14 20 16 17

snapshot 15 15
5 5
7 7

Refer to chart on
previous page
for boroughs

Less than £1,250

£1,250 to £1,500

£1,500 to £1,750
5 Greatest
change over +52.5% Westminster
£1,750 to £2,000
yr five years
Over £2,000
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HomeLet rental December 12
index report 2023

Strongest December 2023 Weakest December 2023

16%

1 +14.8% Lambeth
14%
Barking, Dagenham
2 +14.1% and Havering
12%

10%
3 +11.9% Westminster

Strongest 8% 4 +8.9% Lewisham and Southwark

and weakest 6% 5 +7.4% Hounslow and

Richmond upon Thames

performers 4%

5 +2.6% Harrow and Hillingdon

2%

Merton, Kingston upon

4 +1.9%
0% Thames and Sutton

-2%
3 +1.4% Haringey and Islington
1 2 3 4 5 5 4 3 2 1
2 +0.1% Camden, City of London

Based on annual change to December 2023

1 -1.2% Ealing

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HomeLet rental December 13
index report 2023

+
– +
–
12 12
% income Change Greatest
spent on rent annual* change
Affordability 33.4% -2.0% -3.5%
Renter affordability weakened While Yorkshire and the Yorkshire and
over 2023 with renters paying Humber, London and Scotland the Humber
33.4% of their income on rent in saw renters stretching their
December compared to 31.4% incomes further, the North With rents beginning
a year earlier. East saw renters pay less of to moderate, it is likely
their income on rent than that renter affordability
they did a year earlier. will improve in more
places in 2024.
*Calculated by subtracting the December 2023
figure from December 2022. A negative figure
reflects worsening affordability.

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HomeLet rental December 14
index report 2023
7
yr

Affordability over time December 2017 to December 2023

40%
UK
35%
Greater London

30%

25%

UK and 20%

London 15%

10% Showing the average proportion of

gross income that households are
spending on their rent for tenancies
5%
started in each month. The ratio is
calculated from actual incomes and
0%
Dec rents at a tenancy level rather than
Dec Dec Dec Dec Dec Dec
2017 2018 2019 2020 2021 2022 2023 comparing average earnings in an
area with average market rents.
28.4% 31.1% 31.5% 30.2% 30.5% 31.4% 33.4%
31.4% 35.9% 36.7% 36.7% 34.7% 36.4% 39.6%

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HomeLet rental December 15
index report 2023
North East
Scotland 23.5%
28.8% 23.8%
25.8% +0.3%
-3.0% Yorkshire and the Humber % income
29.2% spent on rent
25.7% December 2023
Northern Ireland
-3.5%
n/a
December
< 26%
27.4% East Midlands 2023
26 to 28%
n/a 29.6%
Regional
*Calculated
by subtracting
29.4% the December December
28 to 30%
2022 figure from 2022

snapshot North West -0.2% December 2023. 30 to 32%

31.7% West Midlands Change 32%+

28.9% 30.1%
-2.7% 29.4% December
2022
Wales -0.8%
34.0% East of England
31.5% 33.3%
-2.5% 31.7%
-1.6%
South West
South East Greater London
36.2%
34.6% 39.6%
34.8%
In conjunction with Dataloft,
31.9% 36.4%
-1.4%
a PriceHubble company Back -2.7% -3.2% Next Regional focus
HomeLet rental December 16
index report 2023

Key
Shows regional average

East
Shows UK average

Median tenant Predominant

Midlands gross income* age group

£26,981 20–29
Delving deeper into the data
we are able to provide tenant
demographic and market
profiling at a local level.
£30,613 20–29
Each month, we provide a
snapshot of the profile of
tenants across different UK
regions based on data for the
last 12 months. This month’s
focus is on East Midlands
*Excludes below £10k and over £500k

Average % tenant Predominant

income spent on rent rental band

29.6% £750–£1000
33.4% £750–£1000 per month

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HomeLet rental December 17
index report 2023

Distance moved last 12 months

Key
Shows regional average

East
Shows UK average
Miles
Up to 1 1 to 2 2 to 5 5 to 10 10 to 25 25 to 50 50 to 100 100 to 200 Over 200 Overseas

Midlands 27% 14% 18% 10% 10% 5% 7% 5% 1% 3%

25% 13% 18% 11% 10% 5% 5% 5% 1% 6%

Profile of properties let Last 12 months Age breakdown Last 12 months

Number of bedrooms Tenants age
Flats Houses
42% Under 29

31% 30 to 39
0 1 2 3+ 1–2 3+
15% 40 to 49

4% 12% 13% 2% 30% 39% 8% 50 to 59

5% 60+
5% 19% 23% 6% 18% 28%
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 December
2023

About the HomeLet About Dataloft

rental index report Dataloft provides data-driven analytics
and insights on housing markets as
The index and average prices are
part of PriceHubble, a global data
produced using HomeLet’s mix adjusted
and technology and business. Dataloft
rental index methodology. This helps to
aggregates data from Barbon and other
track the representative rental values over
companies to create Dataloft Rental Market
time, which factor in changes in the mix of
Analytics (DRMA), the largest and most
property types and locations of rented
comprehensive single source of achieved
properties. Data is gathered from our
With over 30 years of experience, we’re the UK’s leading tenant referencing service, and our rental
rents and renter demographics for the UK.
tenant referencing and specialist protection supplier amounts are based on actual achieved
Their team of analysts and data scientists
produce the evidence needed by clients
for the private rented sector. We’ve got a team of over rental prices with accurate tenancy start
for marketing strategies, investment
300 co-workers dedicated to providing market-leading dates in a reported month, rather than
decisions and planning submissions.
advertised costs. The data used in the
support to our letting agents, helping them to grow and HomeLet Rental Index is aggregated to dataloft.co.uk
develop their business. regional, county and city level only. This
ensures that all property or individual
records remain strictly anonymous.
We always strive to exceed our customers’ expectations.
Our expertise combined with our innovative approach The HomeLet Rental Index is prepared from Disclaimer: This report is produced for general information
drives a continual development of our proposition – and information that we consider is collated with only. While every effort has been made to ensure the
accuracy of this publication, Dataloft Ltd accepts no liability
the value that we provide for our customers. careful attention, but we do not make any for any loss or damage of any nature arising from its use. At
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We reserve the right to vary our methodology under copyright, and reproduction of all or part of it in any
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and to edit or discontinue this report. The
In conjunction with Dataloft
HomeLet Rental Index may not be used for Date of publication: December 2023
commercial purposes; we shall not be liable Source: HomeLet.
Analysis, editorial, design, graphics and charts by Dataloft.
for any decisions made or action taken in
Photography cover: ChrisHepburn/iStock
reliance upon the published data. Photography pages 15 & 16: David Martin Jackson